Slow Stochastic Use

Discussion in 'Technical Analysis' started by Miragers, Jul 19, 2006.

  1. Ive been using a Slow Sochastic for a while now and wanted so see how many other use the Stochastic to support their entry and exit decisions? If you do what time periods do you use it on and what lengths do you have the K% and D% set at?

    Thanks for the feedback
  2. The problem with stochastics, and all oscillators for that matter, is that you get a nice trending move and the thing is stuck in oversold or overbought and more then likely will you give you false signals. Of course they work great in sideways markets, but I would just like to wait and jump on the trending move.

    If you look around at some of the journals, there is one that uses divergences. I dont believe anyone there uses stochastics, but you can use stochastics for divergences.

    Other then that, stochastics might look great on a historical chart, but in real-time i found it useless.
  3. works for swing trading, fnot great or day trading.
  4. Truff


    Use ADX with the stochastic. ADX will tell you strength of trend when stochastic becomes overbout or oversold. If ADX is flat then its safe to fade the move, if ADX is stong and trending, then stay away or buy dips
  5. I use the slosto %K daytrading the NQ, using divergences to signal reversals off S/R (without the S/R, I don't find it useful), default setting.

    As for exit, I begin selling at the ADR, then finish when the trend reverses. The slosto is not a factor.
  6. Lamont - how exactly do you define when a 'trend reverses'. If you wait too long, you get a terrible exit, if you are quick to pull the trigger you may exit during a consolidation period. Curious how you know when the trend is reversing.
  7. When the slosto diverges from price when price hits S/R, I place an entry stop just below the highest/lowest price point with a cover stop just beyond the swing point.

    However, unless S/R is a factor, this isn't much better than trading counter-trend.
  8. For example:

  9. Truff: What length ADX do you use and for what time period?
  10. Truff


    14 and i use it on ALL time frames that i use.
    #10     Jul 20, 2006